Greece: ranking of taxation

The report on the composition of tax revenues by OECD member countries, and Greece, we note, is at the bottom of the ranking, reflects the complexity of real estate taxation and exsanguination of taxpayers.

While property taxes averaged 5.6% of tax revenue in OECD countries, in Greece they are 8.1%. However, tax levies are not limited to this.

Transfer taxes, inheritance taxes, donations and parental assistance, increased taxation (surcharge) for individuals and businesses, capital gains taxes, real estate and electricity taxes … and the long list goes on and on.

It is obvious that in a special rating, which included 37 European OECD member countries, Greece occupies an unenviable 29th place. Despite the fact that the country has risen by only 1 position compared to 2020.

Estonia tops the list, according to the Tax Fund report that compiled OECD data, and here’s why: The state levies property taxes on land only, not buildings or other infrastructure, and is one of three countries (along with Australia and New Zealand). who apply such a system without providing any other taxes or property tax. In contrast, Italy has the worst ranking with many taxes and other fees on real estate.

Greece’s position is expected to improve in 2022 as two important interventions change the situation.

Firstly, since October 1, there has been a change in the taxation of parental assistance (the tax-free limit is increased to 800,000 euros). Recall that if you (as well as grandparents, aunts or uncles, in general, relatives) transfer some money to your child, then you also need to pay tax from this!

The second major intervention concerns the restructuring of ENFIA, a key element of which is the abolition of the surcharge tax in its current form.

The “pluses” include the “freezing” of VAT and luxury tax “Φόρου Υπεραξίας” until 2024, while for newly constructed buildings the Ministry of Finance will be able to apply zero VAT from 2025.





Source link

High-quality journalistic work cannot be free, otherwise it becomes dependent on the authorities or the oligarchs.
Our site is solely funded by advertising money.
Please disable your ad blocker to continue reading the news.
Best regards, editors